We note that the Immersion Corporation (NASDAQ:IMMR) CFO & Treasurer, James Dodson, recently sold US$53k worth of stock for US$10.68 per share. On the bright side, that's just a small sale and only reduced their holding by 9.9%.
The Last 12 Months Of Insider Transactions At Immersion
In the last twelve months, the biggest single sale by an insider was when the Lead Independent Director, Elias Nader, sold US$107k worth of shares at a price of US$8.22 per share. That means that an insider was selling shares at slightly below the current price (US$10.63). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 31% of Elias Nader's holding.
In the last year Immersion insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Immersion Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.9% of Immersion shares, worth about US$27m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Immersion Insiders?
An insider hasn't bought Immersion stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Immersion is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Immersion has 4 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
But note: Immersion may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com